Europe Non-Dairy Milk Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Europe Non-Dairy Milk Market Analysis

The Europe Non-Dairy Milk Market size is estimated at 6.39 billion USD in 2025, and is expected to reach 12.64 billion USD by 2030, growing at a CAGR of 14.60% during the forecast period (2025-2030).

The European non-dairy milk market is experiencing a fundamental shift in consumer preferences driven by increasing health consciousness and sustainability concerns. Plant-based milk alternatives have emerged as the innovation leader in the milk category, supported by significant advancements in ingredient diversification and product development. These innovations aim to replicate both the sensory experience and nutritional value of conventional dairy milk. The industry has successfully addressed historical challenges related to taste and texture, leading to wider consumer acceptance. A notable advantage of plant-based alternatives is their extended shelf life, with products lasting up to 10 days at room temperature compared to 4-7 days for conventional dairy milk.

Distribution channels play a crucial role in market development, with off-trade channels dominating the landscape and accounting for over 97% of sales in 2022. Hypermarkets and supermarkets serve as primary growth drivers within the off-trade segment, offering extensive product varieties and regular promotional activities. These retail channels have strengthened their position through dedicated vegan spaces and kiosks equipped with both global and private labels. The retail landscape has evolved to include specialized sections for dairy-free milk products, making them more accessible to mainstream consumers.

Product innovation and diversification continue to shape the market dynamics, with manufacturers focusing on developing new flavors and functional benefits. Soy milk leads the off-trade channel preferences, commanding a 38.17% market share in 2022, followed by growing demand for oat, almond, and other milk alternative bases. Companies are increasingly investing in research and development to improve taste profiles, nutritional content, and functionality. The industry has witnessed significant advancement in manufacturing processes, leading to improved product quality and consistency across various dairy substitute alternatives.

Consumer awareness and changing dietary preferences have become key market drivers, with a notable shift toward flexitarian and plant-based diets. In Germany, which leads the European market, an impressive 93% of consumers regularly purchase dairy-free milk alternatives, demonstrating the mainstream acceptance of these products. The market has evolved beyond serving just vegan and vegetarian consumers, with approximately 30% of Spanish consumers identifying as flexitarian in 2022. This broader consumer base has encouraged manufacturers to develop products that appeal to both traditional dairy consumers and those seeking alternative dairy options, leading to more sophisticated product offerings and marketing strategies.

Europe Non-Dairy Milk Market Trends

The consumption of plant-based milk products increased due to the health benefits they offer

• The consumption of plant milk in Europe is on the rise. The increasing inclusion of oat milk instead of conventional milk, especially in the daily diet, is strengthening consumption patterns across Europe. Compared to other plant-based products such as cheese and meat, plant-based milk leads the plant-based food market in the region. The European plant-based milk market is expected to hold a share of 66.8% in 2023. Many consumers are familiar with milk alternatives like soy and coconut milk. In Germany, 93% of consumers consume plant-based milk, which is higher than in any of the other plant-based product categories.
• The popularity of plant milk has increased over the past decade. Drinks like these have been consumed for centuries in various cultures. In Spain, tiger nut milk, known as horchata de chufa, is a popular national drink. Plant milk has become a household staple and is no longer consumed exclusively by vegans and vegetarians. Nearly 54% of European consumers prefer plant-based milk, and 43% purchase dairy and dairy alternatives.
• The domestic demand for plant-based milk is expected to be constant during the forecast period. This is due to the growing consumption of plant milk as a staple product. The per capita consumption of plant milk is anticipated to rise by 44% during 2024-2027. Bigger cities in European countries have strong plant-based consumer bases, but a gradual shift toward plant-based protein consumption is expected to spread to other parts of countries during the forecast period. Around 60% of UK consumers were interested in plant-based proteins in 2022.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Product Type

Soy Milk Segment in European Non-Dairy Milk Market

Soy milk dominates the European non-dairy milk market, holding approximately 43% market share in 2024. The segment's strong position is primarily driven by its rich nutritional profile as an alternative to conventional dairy protein. The increasing importance of soy-based protein as an alternative to conventional meat and dairy protein continues to drive demand across Europe. Germany, France, and Italy are identified as the key markets for soy milk, collectively representing a significant portion of Europe's soy milk consumption. Supermarkets and hypermarkets are major distribution channels, with the segment registering over 62% share of overall soy milk sales through off-trade channels. Major retailers like Asda, Tesco, and Sainsbury's offer their own private label soy milk products to cater to growing consumer demand.

Hemp Milk Segment in European Non-Dairy Milk Market

Hemp milk is emerging as the fastest-growing segment in the European non-dairy milk market, projected to grow at approximately 22% annually from 2024 to 2029. The favorable regulatory framework for hemp cultivation and its use in industrial food manufacturing are driving this growth. The European Union's support for industrial hemp cultivation under the Common Agricultural Policy (CAP) has created a strong foundation for market expansion. Hemp milk's popularity is particularly notable in Germany and the United Kingdom, where consumers are increasingly attracted to its unique nutritional benefits, including high protein content, omega-3 fatty acids, calcium, and iron. Manufacturers are responding to this growing demand by introducing flavored variants and focusing on innovative product development.

Remaining Segments in Product Type

The European non-dairy milk market features several other significant segments, including oat milk, almond milk, coconut milk, cashew milk, and hazelnut milk. Oat milk has emerged as a popular coffee and tea alternative, particularly in the United Kingdom and Germany, with a strong presence in major coffee chains. Almond milk maintains its position as a preferred choice among health-conscious consumers due to its lower calorie content and versatility in various applications. Coconut milk has gained traction due to its creamy texture and use in both beverages and cooking applications, while cashew milk and hazelnut milk segments cater to specific consumer preferences with their distinct flavors and nutritional profiles.

Segment Analysis: Distribution Channel

Off-Trade Segment in Europe Non-Dairy Milk Market

The off-trade segment dominates the European non-dairy milk market, commanding approximately 98% of the total market value in 2024. This substantial market share is primarily driven by the wider availability of various brands through supermarkets, hypermarkets, convenience stores, and online retail channels. The segment's growth is further propelled by the increasing penetration of key brands across these channels and the rising adoption of e-commerce platforms among European consumers. Supermarkets and hypermarkets particularly stand out within the off-trade segment, accounting for over 61% of the distribution due to their strong position in offering wide product selections, considerable shelf space, and frequent price promotions. The segment's robust performance is also attributed to the ongoing collaboration of plant-based milk brands with online retailers and the convenience of comparing different products and reading product labels in retail environments. Additionally, the expansion of dedicated vegan spaces and kiosks equipped with several global and private labels in supermarkets has significantly contributed to the segment's dominance.

On-Trade Segment in Europe Non-Dairy Milk Market

The on-trade segment represents a smaller but growing distribution channel in the European non-dairy milk market. This segment primarily operates through restaurants, cafes, bars, and other foodservice establishments. Leading regional restaurants increasingly use plant-based milk substitutes as an ingredient option in cocktails, smoothies, coffees, and espresso-based drinks. Key coffee chains and restaurant chains like Starbucks, Costa Coffee, Tchibo, and Pret A Manger are incorporating plant-based milk offerings in their menu cards to cater to eco-conscious consumers. The segment's growth is particularly notable in the United Kingdom, where oat milk has emerged as the preferred dairy alternative in coffee shops. The increasing adoption of plant-based options by foodservice establishments and the growing consumer preference for non-dairy alternatives in out-of-home consumption settings continue to drive the segment's expansion in the European market.

Europe Non-Dairy Milk Market Geography Segment Analysis

Non-Dairy Milk Market in Germany

Germany stands as the powerhouse in Europe's non-dairy milk market, commanding approximately 24% of the total market value in 2024. The country's dominance is primarily driven by the increasing health consciousness among consumers, particularly due to rising obesity rates. The German market has witnessed a significant shift in consumer preferences, with plant-based milk emerging as a popular alternative to conventional dairy products. The country's retail landscape has adapted to this changing demand, with major retailers organizing dedicated vegan spaces and kiosks equipped with several global and private labels. Leading brands like Alpro, Provamel, Oatly, and Alnatura have established a strong presence in German supermarkets, while online grocers such as Rewe, Bringmeister, Globus, and Amazon Fresh have expanded their plant-based milk offerings. The market's growth is particularly notable in the oat milk segment, which has emerged as the most popular choice among German consumers, followed by soy milk and almond milk variants.

Non-Dairy Milk Market in Russia

Russia's non-dairy milk market is experiencing remarkable growth, projected to expand at approximately 24% annually from 2024 to 2029. The market's explosive growth is primarily attributed to the rising prevalence of lactose intolerance among the younger generation, coupled with evolving dietary preferences and lifestyle changes. Oat milk has emerged as the dominant segment in Russia, accounting for a significant portion of the market share. The country's plant-based milk industry has benefited from increased consumer awareness about health benefits and environmental sustainability. Major manufacturers like Chobani, Oatly, and Danone have recognized this potential and are actively expanding their presence in the Russian market. The growing acceptance of milk alternatives is further supported by the rising number of consumers willing to substitute traditional dairy products with plant-based options, particularly among the health-conscious urban population.

Non-Dairy Milk Market in Spain

Spain has established itself as a key player in Europe's non-dairy milk market, driven by the growing flexitarian population and increasing awareness of plant-based diets. The Spanish market is characterized by strong consumer preference for soy milk, which has emerged as the leading segment in the country. The market's growth is supported by the widespread availability of plant-based milk products through various distribution channels, particularly supermarkets and hypermarkets. Spanish consumers have shown increasing interest in sustainability and personal nutrition, leading manufacturers to innovate with various flavors and fortify their products with omega-3, collagen, aloe vera, plant sterols, and soy isoflavones. The country's retail landscape has evolved to accommodate this growing demand, with major supermarket chains like Mercadona, Carrefour, DIA, and Eroski offering a wide range of dairy-free milk options to cater to diverse consumer preferences.

Non-Dairy Milk Market in United Kingdom

The United Kingdom's non-dairy milk market has witnessed substantial transformation, driven by the rising culture of veganism and increasing environmental consciousness among consumers. The market has seen significant innovation in product development, particularly in the coffee and tea segment, where plant-based milk alternatives have gained considerable traction. British consumers have shown a strong preference for oat milk in coffee shops, followed by almond milk and other plant-based variants. The country's retail sector has responded to this trend by expanding their plant-based milk offerings, with major supermarket chains introducing their own private label products. The market has also benefited from the growing number of coffee chains and restaurants incorporating plant-based milk options in their menus, often featuring multiple alternatives to cater to diverse consumer preferences.

Non-Dairy Milk Market in Other Countries

The non-dairy milk market in other European countries, including France, Italy, the Netherlands, Belgium, and Turkey, demonstrates varying degrees of market maturity and consumer acceptance. These markets are characterized by distinct consumer preferences and consumption patterns, influenced by local dietary habits and cultural factors. France has seen increasing adoption of plant-based milk, particularly in urban areas, while Italy's market is driven by health-conscious consumers seeking alternatives to traditional dairy products. The Netherlands and Belgium have developed sophisticated distribution networks for plant-based milk, supported by strong retail infrastructure and consumer awareness. Turkey's market shows promising potential, particularly in major metropolitan areas where health and wellness trends are gaining momentum. These countries collectively contribute to the diverse and dynamic nature of Europe's non-dairy milk market, each offering unique opportunities for market players.

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